Bharti Airtel: Telenor India has spectrum across seven telecom circles in Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam. However, Bharti Airtel will soon acquire the telecom business for a sum. Once Airtel officially acquires Telenor it would take over Telenor India’s spectrum, licenses and operations, its employees and the 44 million customer base. Until the official transaction takes place Telenor India’s service operations will continue like before.
Today, Bharti Airtel said that the company has “entered into a definitive agreement with Telenor South Asia Investments Pte Ltd to acquire Telenor (India) Communications Private Limited.” Meanwhile, in another statement, the telecom service provider Telenor said: “the transaction will not trigger any impairment. As of fourth quarter 2016, the remaining value of tangible and intangible assets in Telenor India amounted to NOK 0.3 billion. The transaction is expected to close within 12 months.”
Bharti Airtel to Take Over Telenor India Soon:
The telecom giant Bharti Airtel said, “The proposed acquisition will include a transfer of all of Telenor India’s assets and customers, further augmenting Airtel’s overall customer base and network. It will also enable Airtel to further bolster its strong spectrum footprint in these seven circles, with the addition of 43.4 MHz spectrum in the 1,800 MHz band.”
The telecom service provider Telenor India made its entry into India in the year 2008. Its revenue generated by the year 2016 was NOK 6.0 billion with NOK -0.4 billion of operating cash flow. Effective first quarter 2017 Telenor India will be an asset held for sale and discontinued operations in Telenor Group’s financial reporting. The Airtel MD & CEO said that the acquisition transaction will enhance Airtel’s spectrum portfolio.
The Chief Executive Officer of Telenor Group Sigve Brekke said, “”Finding a long-term solution to our India business has been a priority for us, and we are pleased with our agreement with Airtel. The decision to exit India has not been taken lightly. After thorough consideration, it is our view that the significant investments needed to secure Telenor India’s future business on a standalone basis will not give an acceptable level of return.”